Trading in oils is very lucrative business to conduct, it perceived to only belong to the rich and wealthy merchants within the society. The oil trade has high returns especially when it comes to the returns. The traders are able to buy the commodity at low prices store the product and later sell it at a price higher than the purchase price. They usually take advantage of the market fluctuation of the commodity prices in order to maximize their revenue.
The startup cost for the business is extremely high since one has to buy the large costly storage tanks he or she can be able to store the commodity as the waiting continues for the market prices to hike. The commodity itself is very expensive and therefore it requires a lot of money for initial purchase in large quantities.
The next move is to the real trading where the trading is able to move fully into the business through funding the purchase of these products. This is done by depositing own account and this allows one to earn a certain amount of bonus for the first deposit made.
Oil products are virtually used in most parts of the world and hence it drives the economy either towards long term growth or economic destruction. The industrial revolution led to development and production of different types of machines that used the fuel products to function effectively.
Any change in the prices of this commodity has a greater impact in the economy since it affects every sector of the economy. Since most business enterprises are majorly concerned about the profits they get out of this activity, they do not care too much about the effects of their action to the economy.
The governments have therefore adopted certain regulations that would help curb any malpractice by these business tycoons liken that of increasing the commodity price without proper reason behind the scheme. This move by the government has impacted positively on the growth and stabilization of the economy.
This makes it very essential when it comes to the economic growth. By doubling the prices of this commodity the prices of other goods produced in the economy has to shoot very high to neutralize the effect of this move. Once the prices increase the standard of living is deteriorated since consumer will have to spend more of the constant income to maintain their level of consumption.
With this in mind the government agencies have adopted various measures to such as the commission that overlooks and sets the prices for this essential commodity to enhance stability and economic growth. The commissions mandate is to liaise with the oil marketers to ensure that their interests are also considered when setting the prices.
The oil trade is very lucrative business but very risky of all the other types of business. There are several risks that are exposed to the commodity. Beginning from the part of warehouse where the commodity is stored there can be spillage of the commodity. The product is very flammable hence cases of fire next to the premise and during the transportation. In case of fire outbreak, the whole bunch of the commodity is lost.
The startup cost for the business is extremely high since one has to buy the large costly storage tanks he or she can be able to store the commodity as the waiting continues for the market prices to hike. The commodity itself is very expensive and therefore it requires a lot of money for initial purchase in large quantities.
The next move is to the real trading where the trading is able to move fully into the business through funding the purchase of these products. This is done by depositing own account and this allows one to earn a certain amount of bonus for the first deposit made.
Oil products are virtually used in most parts of the world and hence it drives the economy either towards long term growth or economic destruction. The industrial revolution led to development and production of different types of machines that used the fuel products to function effectively.
Any change in the prices of this commodity has a greater impact in the economy since it affects every sector of the economy. Since most business enterprises are majorly concerned about the profits they get out of this activity, they do not care too much about the effects of their action to the economy.
The governments have therefore adopted certain regulations that would help curb any malpractice by these business tycoons liken that of increasing the commodity price without proper reason behind the scheme. This move by the government has impacted positively on the growth and stabilization of the economy.
This makes it very essential when it comes to the economic growth. By doubling the prices of this commodity the prices of other goods produced in the economy has to shoot very high to neutralize the effect of this move. Once the prices increase the standard of living is deteriorated since consumer will have to spend more of the constant income to maintain their level of consumption.
With this in mind the government agencies have adopted various measures to such as the commission that overlooks and sets the prices for this essential commodity to enhance stability and economic growth. The commissions mandate is to liaise with the oil marketers to ensure that their interests are also considered when setting the prices.
The oil trade is very lucrative business but very risky of all the other types of business. There are several risks that are exposed to the commodity. Beginning from the part of warehouse where the commodity is stored there can be spillage of the commodity. The product is very flammable hence cases of fire next to the premise and during the transportation. In case of fire outbreak, the whole bunch of the commodity is lost.
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